Govt. Announces New Wastage Norms for Jewellery, Effective 1st Jan 2025: GJEPC
5th November 2024
The Directorate General of Foreign Trade (DGFT) has revised wastage norms and Standard Input Output Norms (SIONs) for jewellery, effective from 1st January 2025. DGFT had reduced the wastage norms drastically across all jewellery categories vide Public Notice No. 05/2024-25 on 27th May 2024; recognizing the impact of these drastic reductions, the Council promptly convened a stakeholder meeting with DGFT officials on the same day, requesting an opportunity to present corroborative data on manufacturing workflows. As a result, the implementation of the previously issued notice was periodically deferred
Nationwide Survey Conducted by GJEPC
The Council conducted a nationwide survey, collecting and analysing data from 160 exporters and manufacturers, aligning with the existing process loss norms as outlined in the Handbook of Procedures 2023.
Key Industry Requests
The industry made two key requests: (a) To set wastage norms that realistically align with the jewellery manufacturing process, and (b) To allow an adequate transition period for adapting to the new regulations.
Approval of Adjustments by DGFT
Following GJEPC’s research and a series of discussions with DGFT officials, both requests were approved, resulting in practical adjustments to the previous wastage norms.
Effective Date of Updated Norms
The updated rates will take effect from 1st January 2025. During the interim, prior norms will remain in effect until 31st December 2024.
Revisions to SIONs for Efficient Metal Utilisation
The notification also details revisions to SIONs, specifying the amount of raw materials permitted for a specific quantity of finished jewellery. These revised norms aim to balance efficient metal utilisation with the realities of jewellery manufacturing processes, benefiting traditional artisans.
GJEPC’s Ongoing Commitment
GJEPC remains committed to safeguarding the interests of the gem and jewellery sector and will continue working closely with the government to ensure favourable industry policies. They encouraged members to review the detailed amendments and prepare for changes effective from January 1, 2025.
About The Gem and Jewellery Export Promotion Council (GJEPC):
The Gem & Jewellery Export Promotion Council (GJEPC), set up by the Ministry of Commerce, Government of India (GoI) in 1966, is one of several Export Promotion Councils (EPCs) launched to boost the country’s exports. Since 1998, GJEPC has held autonomous status and represents over 10,000 members in the sector. With headquarters in Mumbai and regional offices in major industry centres, GJEPC actively promotes the sector and serves its members through an extensive range of services.
